Many people across the country did not expect that emerging from a global pandemic would be a red hot housing market and the soaring costs in relation to it. We didn’t imagine how many people would find themselves in bidding wars, bumping home prices even higher and seeing houses go under contract within literal hours.
A few of the reasons for this hot market include this new work from home era, a generation reaching their primetime of home buying, and less homes built over the last decade compared to previous decades–in turn creating a huge supply and demand issue.
For the Buyers
What buyers can do in this crazy market is make sure to get pre-approved for a mortgage so you can include it in your offer once the right house is listed. In this market, you have to be ready to pounce. It’s very competitive, and while many houses go pending fast, more houses are being listed daily. Be open to change if necessary, whether that means tweaking your location search or square footage size etc., but if possible don’t opt to waive inspections.
For the Sellers
Because it’s a seller’s market, now is obviously the best time to be a seller. Before jumping on the bandwagon to sell your home in the current market conditions, be sure to already have another plan in place for where you’ll live. Many homes for sale are getting hit with multiple offers within hours (to a few days at most), so be ready to make decisions and plan for a potentially fast turnaround from initial listing to closing day.
For the Marketers
So what does all of this mean for marketers and advertisers? If you have clients in the real estate industry such as home building, you may already know these supply and demand issues as well as other important factors contributing to them, such as the supply chain, zoning, workforce availability, and overall impact on the time it takes from breaking ground to having a move-in ready home.
Businesses in the real estate industry–specifically in residential real estate–should keep the future in mind when planning your marketing strategy. Homes may be easy to sell now due to pent up demand, but that will not always be the case. Work with your marketing team (whether your team is in-house, an agency partner, or a mix of both) to continue building your brand awareness. While we can’t predict the future, it’s good practice to have a general marketing plan in place for when the market turns another way.
Home prices are significantly higher than just before the pandemic started but home prices are forecasted to stabilize, although prices may not likely drop very much from here on out. With the Federal Reserve raising interest rates incrementally throughout this year, the housing market may soon begin to cool down. For all parties involved in the real estate market (buyers, sellers, and industry professionals), this is definitely an interesting time to be part of it.
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